On Apr 10, 8:56 am, Roger wrote:
On 3 Apr 2007 12:24:40 -0700, "xyzzy" wrote:



On Mar 27, 8:22 pm, Roger wrote:
On 27 Mar 2007 09:31:23 -0700, "xyzzy" wrote:

On Mar 27, 8:00 am, Jon Kraus wrote:
Got a fuel bill from our FBO (KUMP Indianapolis Metro) the other day.
Not only do they charge one of the highest fuel prices around, they also
charge 6% Indiana sales tax on top of the 1% Indianapolis Airport
Authority surcharge (because they can).

When I called to inquire about charging 6% sales tax on the fuel they
just said "that is how we've done it for 20 years and everyone else does
it like that too." I've never had a sales tax added on top of the fuel
price before.

I thought that all the taxes we included in the price of the fuel?
Anyone else ever experience this?

I know at my airport (KTTA in NC) my flying club rents planes wet but

Your club rents planes?

Yeah, it's structured as a nonprofit corporation with the members as
the shareholders. The corporation owns the planes and rents them to
the members.

If you do much flying it might pay to talk to a tax lawyer for your
state and figure out a different terminology. Unless a business,
shareholders seldom rent to themselves. If we had rented to some one
outside the "club" we'd have had to pay tax, but not an hourly charge
for members.

If set up as a corporation you might want to consider becoming a club.
However I'm not familiar with your state's tax laws.

It sounds like you're assuming we haven't thought this through.

I'm not on the board and was not around when the club was founded over
40 years ago, but the fact that club usually has around 150 members
with significant turnover is probably one reason it is structured like
it is. Plus we have loans and assets owned as a corporation that
would be pretty hard to unwind if we changed ownership structure, if
we even could given our state's nonprofit corporation and tax laws --
as far as I know there is no such thing as a nonprofit partnership in
my state. Then there are issues of liability, where a corporation
protects members better than a partnership, etc etc.